INFO
IHS Markit Ltd
Price:  
19.42 
USD
Volume:  
1,007.00
United Kingdom | Professional Services
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INFO WACC - Weighted Average Cost of Capital

The WACC of IHS Markit Ltd (INFO) is 8.0%.

The Cost of Equity of IHS Markit Ltd (INFO) is 8.40%.
The Cost of Debt of IHS Markit Ltd (INFO) is 4.45%.

Range Selected
Cost of equity 7.30% - 9.50% 8.40%
Tax rate 8.50% - 11.40% 9.95%
Cost of debt 4.40% - 4.50% 4.45%
WACC 7.0% - 8.9% 8.0%
WACC

INFO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 0.98 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.50%
Tax rate 8.50% 11.40%
Debt/Equity ratio 0.11 0.11
Cost of debt 4.40% 4.50%
After-tax WACC 7.0% 8.9%
Selected WACC 8.0%

INFO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for INFO:

cost_of_equity (8.40%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.98) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.